Administrators have been appointed to the company behind the Oxford Street property used by Topshop, which could lead to a sale of the trophy site, after the retailer’s parent Arcadia Group collapsed into administration last night.
Sir Philip Green’s Arcadia, behind brands such as Dorothy Perkins and Topshop, went into administration last night, putting 13000 jobs at risk.
It has now emerged that Ed Boyle and Steve Absolom from KPMG’s restructuring practice have been appointed joint administrators to Redcastle (214 Oxford Street) Limited.
That company is a property-owning subsidiary of Arcadia Group, and it holds the long leasehold interest in Arcadia’s flagship Topshop and Topman store at 214 Oxford Street in the West End.
KPMG said that prior to the lockdown measures introduced by the Government in response to the pandemic, the 100,000 square feet store welcomed 400,000 customers through its doors each week.
Ed Boyle, partner at KPMG and joint administrator, today said: “Following the company entering into administration, we intend to work with the company’s creditors to assess options to protect and then realise the value in the 214 Oxford Street store.”
Property website React News, which first reported the KPMG appointment, said KPMG is understood to have been lined up by creditors of the company, notably senior lender Apollo Global Management. Apollo provided a four-year senior loan secured against the building in December. At that point it was valued at around £400 million.
Retail property values have been hurt since then due to the coronavirus crisis.
React News said the Arcadia pension fund would benefit from any potential sales proceeds from the Oxford Street site generated over and above the £310 million loan.